– with Tim McKibbin, CEO, Real Estate Institute of NSW 16 November 2020
“Summer is is only a fortnight away and after a tumultuous 2020, many people looking to make a move would love to be in their new home by Christmas. It’s therefore likely that many purchasers over the next few days and weeks will include taking possession of their new home early as part of the negotiations.
“Auctions, while obviously not a total representation of the market, do provide an opportunity to take the pulse of the market and this week, we expect the recent trend to continue.
“Based on the market’s performance over the past months, I expect most of the properties being auctioned this week will sell under the hammer, if not prior. Week-onweek volumes are tipped to remain strong too, notwithstanding the underlying supply shortage, and robust demand suggests a transaction is likely where vendors’ expectations are realistic.
“First home buyers remain active with low interest rates and incentives playing a part, but investors are a bit more cautious. On Tuesday, the NSW Treasurer will deliver the budget, and given the property industry is the engine room of the NSW economy and a huge source of tax revenue, it is critical that support be provided to the industry.
“Perhaps this support will come through incentives with the potential to support a broader segment of the market, though there are various opportunities for reform.
“Specifically, stamp duty reform is long overdue. The point remains that the NSW Government could actually pocket additional revenue through stamp duty reform, given the burden this tax places on people who would otherwise consider moving, including downsizers.
“And yet, it seems the NSW Government remains reticent to take a progressive approach on this issue, despite the deficit to be announced tomorrow.
“The Treasurer has already made clear the intention to focus on jobs, and the property industry has a big role to play in the continuing economic recovery. REINSW recently shone the spotlight on the number of jobs that lie in waiting due to bureaucratic inefficiencies.
“It’s an increasingly pressing issue because, with market activity expected to remain strong over the remainder of the year, the industry has the capacity to support more jobs and play a prominent role in the recovery.”
All quotes can be attributed to Tim McKibbin, Chief Executive Officer, REINSW.